Alnylam Pharmaceuticals, Inc. (ALNY) Earnings & Analysis

Latest quarter

Alnylam’s Q2 FY2026 revenue was −2.09% against the consensus, while adjusted earnings per share were −10.2% against the consensus. The company reported revenue of $1.3 billion, up from $773.7 million a year earlier, and adjusted EPS of $1.84 versus the $2.05 consensus estimate.

CFO Jeff Poulton said net product revenue growth was driven by continued AMVUTTRA uptake for transthyretin amyloidosis with cardiomyopathy, a disease affecting the heart. He said collaboration revenue fell because of lower revenue from the Regeneron collaboration, partly offset by higher reimbursable development activity from Roche. Royalty revenue rose as sales of Leqvio increased, Poulton said.

Alnylam’s overall gross margin was 76.9%, compared with 81.5% a year earlier. Poulton said the separate margin on product sales declined as higher AMVUTTRA revenue increased the average royalty rate payable to Sanofi. The company reported diluted EPS of $1.21, versus −$0.55 a year earlier, and free cash flow of $292.0 million, up from $115.5 million. Poulton said Alnylam ended the quarter with $3.3 billion in cash, cash equivalents and marketable securities.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Yvonne Greenstreet said AMVUTTRA revenue exceeded $1 billion in a quarter for the first time. She said first-line new patient starts accounted for about 80% of growth in the treatment category, while early second-line demand had benefited from patients waiting for a new therapy and had since normalized.

Poulton said the company’s original guidance had reflected consistently high second-line volumes during the 2025 launch. As the launch progressed, he said, Alnylam understood that pent-up demand had contributed more than it had recognized. That normalization drove the reduction in its TTR revenue guidance, he said.

Asked about the split between first- and second-line patients, Chief Commercial Officer Tolga Tanguler said the change reflected overall second-line volume rather than a loss of market share. Tanguler said Alnylam was deepening adoption in existing accounts and expanding its prescriber base. He said the company was intensifying efforts to help community practices manage injections, including through alternative sites of care.

On pricing, Poulton said modest quarter-to-quarter net price declines seen in the first half were expected to continue in the second half. He also attributed the decline in product gross margin to the higher average royalty rate payable to Sanofi as AMVUTTRA revenue increased. Tanguler said price adjustments for cardiomyopathy launches would make Europe’s contribution to 2026 growth modest.

Asked about the revised outlook, Poulton said reaching its midpoint would require TTR growth in Q3 and Q4 consistent with Q2, and cited first-line demand in expressing confidence. Greenstreet said the outcome of the CardioTransform study did not change Alnylam’s conviction in its TRITON-CM trial; she said the company would review the full study dataset and adapt its plan if appropriate. Tanguler said some Medicare Advantage policies already limited combination use, but Alnylam had not seen payer pushback following the study result.

Guidance

On the Q2 call, Poulton lowered Alnylam’s FY2026 net product revenue guidance to $4.7 billion–$5.1 billion, including $4.2 billion–$4.5 billion for TTR products. The prior TTR outlook was $4.4 billion–$4.7 billion. He also raised the collaboration and royalty revenue outlook to $575.0 million–$625.0 million, citing Leqvio royalties and higher Roche cost reimbursement.

In its October 29 release, Alnylam reiterated the net product and collaboration and royalty revenue ranges given on the Q2 call.